AUTOFORUM - Informed and innovative

What South Africans overlook when buying a new car – and why insurers pay attention

Aug 07, 2026 Tandiwe Cimela, Elite Risk.


What South Africans overlook when buying a new car – and why insurers pay attention

 

Opinion piece by Tandiwe Cimela, Executive of Elite Risk. 

Close to 70% of vehicles sold in South Africa are imported, driven largely by affordable options from India and the growing market share of Chinese manufacturers. However, according to Tandiwe Cimela, Executive of Elite Risk, a leading high-net-worth insurer and part of Old Mutual Insure, while affordability is often the deciding factor when buying a vehicle, motorists should also consider other aspects that impact risk. "While price, styling and features typically drive buying decisions, elements such as vehicle safety and payload capacity can have a significant impact on both road safety and insurance risk," says Cimela.

 

A better safety rating means a lower insurance risk - Her comments follow recent reports highlighting safety concerns around some entry-level vehicles sold in South Africa. The most affordable version of the GWM Haval Jolion sold locally recently received a two-star safety rating from the Global New Car Assessment Programme (Global NCAP) during crash testing conducted in Germany. Similarly, recent Automobile Association (AA) crash tests have highlighted concerns around the crash protection offered by certain entry-level models available in the local market.

 

"A vehicle's safety rating is an important indicator of risk, yet it is often overlooked," says Cimela. "While insurers do not determine premiums solely based on crash-test ratings, vehicles with stronger safety credentials generally present a lower overall risk profile and can contribute positively to underwriting assessments." With so many new vehicle brands entering the South African market, Cimela says consumers should ask several important questions before making a purchase. “Besides considering whether the vehicle has been independently crash tested and what safety rating it achieved, consider its availability of replacement parts, expected repair and maintenance costs, and whether there is a well-established dealer and repair network,” she says.

 

Payload capacity: the hidden risk

Another issue that has recently come under the spotlight is the payload capacity of some SUVs, which has surprised many motorists. Payload refers to the maximum combined weight that a vehicle can safely carry, including passengers, luggage, accessories and cargo. Manufacturers determine these limits to ensure that a vehicle's brakes, tyres, suspension and structural components perform as designed.

 

Recent media reports have highlighted that some SUVs with extensive features and bells and whistles – as demanded by consumers – have relatively modest payload capacities. For example, the all-wheel-drive Jetour T2 2.0T has a payload of just 375kg, meaning that a full complement of passengers and luggage could potentially exceed the vehicle's allowable carrying capacity.

 

Can overloading a vehicle impact an insurance claim?

According to Cimela, each claim is assessed on its own merits. "The key consideration is whether the vehicle was being operated within legal and manufacturer specifications, and whether overloading materially contributed to the accident. If it can be demonstrated that excessive weight affected braking distance, vehicle stability or handling, this could influence the outcome of a claim. Consumers should therefore familiarise themselves with their vehicle's payload limits and ensure they remain within them."

 

The key takeout: Consider a vehicle holistically

While vehicle safety and payload are important considerations, Cimela says they form only part of the overall risk assessment undertaken by insurers. "Consumers often assume that the cheaper vehicle will also be cheaper to insure, but that is not necessarily the case," she says. "Insurers consider a wide range of factors, including theft trends, repair costs, parts availability, claims history, safety features and the intended use of the vehicle."

 

She adds that motorists should look beyond the purchase price when choosing a vehicle and instead consider the total cost of ownership. "The real cost of owning a vehicle extends far beyond the monthly instalment. Insurance premiums, fuel consumption, servicing and maintenance costs, the availability of replacement parts, reliability, resale value and practicality should all form part of the buying decision."

 

From an underwriting perspective, insurers also consider factors such as the driver's age and experience, where the vehicle is kept overnight, its theft risk, repair costs, replace-ment value and historical claims data. "Put another way, a slightly more expensive vehicle with superior safety features, lower theft risk and readily available parts may ultimately cost less to insure and own over its lifetime than a cheaper alternative," Cimela concludes.
Back